证券研究报告 JS 环球生活 (1691 HK) 24 年销售及分销费用率同比+2.86pct，主要由于 SN 亚太多区域广告营销积 极投入。行政费率同比+1.1pct 源于股权激励计提。我们认为公司在策略上 继续深化本土化运营、提升品牌知名度，预计 25 年费用率水平或维持高位。 费用率或维持高位，下修盈利预测 港股通 24 年盈利显压力,亚太成增长引擎 | 华泰研究 | | | 更新报告 | | --- | --- | --- | --- | | 2025 年 | 3 月 | 31 日│中国香港 | 小家电 | 公司公布 2024 年业绩：收入 15.9 亿美元，同比+12%；归母净利 620 万美 元，同比-95%。24 年业绩弱于我们预期（预期归母净利 0.68 亿美元），主 要由于公司在海外采取了更为积极的营销策略，推高费用率，以及九阳业务 毛利率表现偏弱。公司仍计划深耕 SharkNinja 亚太（简称 SN 亚太）成熟 市场，并加大在新兴市场的开拓力度，25 年我们看好其亚太业务的收入表 现。维持"买入"评级。 SharkNinja 亚太收入持续高增，有望维持品类及区域拓展力度 SN 亚太 24 ...

Financial Performance - Revenue from continuing operations was $1,593.6 million, an increase of 11.5% year-over-year[4]. - Gross profit from continuing operations was $510.2 million, up 4.8% year-over-year[4]. - Profit from continuing operations decreased to $8.8 million, a decline of 87.5% year-over-year[4]. - EBITDA from continuing operations decreased by 86.5% to approximately $15.7 million[4]. - Adjusted net profit from continuing operations decreased by 76.5% to approximately $7.1 million[4]. - Total comprehensive income for the year was a loss of $3.3 million compared to a gain of $120.9 million in the previous year[7]. - Basic earnings per share for continuing operations was $0.015, down from $0.2[6]. - The company reported a significant increase in sales and distribution expenses, rising to $331.5 million from $256.3 million[5]. - The company experienced a foreign exchange loss of $9.9 million from overseas operations[7]. - Total revenue for the year was $1,593.6 million, compared to $1,428.7 million in the previous year[5]. Assets and Liabilities - Total non-current assets decreased from $381,382 thousand in 2023 to $369,353 thousand in 2024, a decline of approximately 3%[8]. - Current assets increased from $1,021,909 thousand in 2023 to $1,127,457 thousand in 2024, representing an increase of about 10.3%[8]. - Current liabilities rose from $694,758 thousand in 2023 to $772,265 thousand in 2024, an increase of approximately 11.1%[9]. - Net current assets improved from $327,151 thousand in 2023 to $355,192 thousand in 2024, reflecting an increase of about 8.6%[9]. - Total assets less current liabilities increased from $708,533 thousand in 2023 to $724,545 thousand in 2024, a growth of approximately 2.3%[9]. - Non-current liabilities surged from $10,368 thousand in 2023 to $32,372 thousand in 2024, marking an increase of about 212%[9]. - Total equity decreased slightly from $698,165 thousand in 2023 to $692,173 thousand in 2024, a decline of approximately 0.9%[9]. - Cash and cash equivalents rose from $319,801 thousand in 2023 to $359,580 thousand in 2024, an increase of about 12.4%[8]. Segment Performance - SharkNinja's total revenue for the year ending December 31, 2024, reached $1,593,585 thousand, an increase from $1,428,706 thousand in 2023, representing a growth of approximately 11.5%[20]. - The segment revenue for SharkNinja was $1,554,764 thousand, with $1,212,469 thousand from product sales and $342,295 thousand from the Asia-Pacific segment[18]. - The adjusted pre-tax profit for SharkNinja was $7,655 thousand, reflecting a decrease compared to the previous year's profit of $84,824 thousand[19]. - Revenue from mainland China was $1,003,969 thousand, showing a slight decline from $1,037,566 thousand in 2023[20]. - The Asia-Pacific segment reported a revenue of $381,116 thousand, with a significant increase in procurement services contributing $38,821 thousand[18]. Taxation and Compliance - The total tax expense for continuing operations was a credit of $(1,097) thousand in 2024, compared to an expense of $14,559 thousand in 2023[29]. - The group is subject to a corporate income tax rate of 25% in China for taxable income, with three entities qualifying for preferential tax rates until December 31, 2024[31]. - In Hong Kong, the estimated taxable profits are subject to a tax rate of 16.5%, with one subsidiary qualifying for a two-tiered tax system in 2023, where the first HKD 2,000,000 is taxed at 8.25%[32]. - The group's effective tax rate for continuing operations is calculated at 17.2% based on actual rates applied[34]. - The group has recognized deferred tax assets and liabilities related to Pillar Two income tax regulations, effective in certain jurisdictions including South Korea and Australia[35]. Discontinued Operations - The company terminated operations of SharkNinja Group in July 2023, distributing all shares to shareholders[11]. - The company completed the distribution of all its shares in SharkNinja Group to shareholders on July 31, 2023, resulting in SharkNinja no longer being a subsidiary[37]. - As of July 31, 2023, the total assets of the discontinued operations amounted to $3,594,750,000, while total liabilities were $2,092,152,000, leading to a net asset value of $1,502,598,000[39]. - The basic and diluted earnings per share from discontinued operations were both $0.023 for the period[41]. Operational Highlights - The company successfully launched innovative small appliances under the SharkNinja brand, focusing on the Asia-Pacific market excluding mainland China[71]. - The Joyoung division maintained a leading position in several innovative product categories in the mainland China market during the reporting period[72]. - The company aims to expand its market presence by introducing new products and enhancing its marketing activities[71]. - The company is focusing on expanding its retail channels, including e-commerce and content-driven platforms, to enhance user engagement and brand loyalty[75]. - The company aims to strengthen its direct sales team and enhance retail experiences to better connect with consumers and adapt to market trends in 2024[75]. Employee and Governance - As of December 31, 2024, the group has approximately 2,558 employees, with employee costs confirmed at $241.5 million[155]. - The company provides training for all employees covering corporate culture, R&D, strategy, and business skills[156]. - The company has established four board committees, including the Strategy Committee and Audit Committee, in compliance with corporate governance regulations[159]. - The company has adhered to all applicable corporate governance code provisions, with the exception of the separation of roles between the Chairman and CEO[161]. Future Outlook - The company plans to launch more impactful market products in the Philippines, Thailand, and Indonesia in the first half of 2025[84]. - The company aims to enhance brand awareness and influence through localized products tailored to consumer needs in different regions[146]. - The company is actively seeking potential strategic partnerships and quality acquisition opportunities[146]. - The company anticipates no significant risk from Pillar Two income tax as most jurisdictions have an effective tax rate above 15%[36].

Financial Performance - Net profit attributable to shareholders for the third quarter was RMB (77,328,704.46), representing a decline of 166.46% year-on-year [4]. - Operating revenue for the third quarter was RMB 1,795,401,886.07, down 27.12% compared to the same period last year [4]. - Net profit attributable to shareholders for the nine months ended September 30, 2024, was RMB 98,063,944.12, a decrease of 73.02% year-on-year [4]. - Basic earnings per share for the third quarter was RMB (0.10), a decline of 162.50% compared to the previous year [4]. - The company reported a net profit excluding non-recurring items of RMB (81,396,143.29) for the third quarter, down 172.45% year-on-year [4]. Asset and Equity - Total assets as of September 30, 2024, amounted to RMB 7,515,021,102.80, a decrease of 1.28% compared to the end of the previous year [3]. - Total net assets attributable to shareholders as of September 30, 2024, were RMB 3,460,916,058.40, a decrease of 0.30% from the previous year [3]. Return on Investment - The weighted average return on net assets decreased to (2.20%) from 3.41%, a drop of 5.61 percentage points [4]. Cash Flow - Cash flow from operating activities for the nine months was RMB 416,958,032.06, a decrease of 2.37% year-on-year [4]. Non-Recurring Items - Non-recurring gains and losses for the nine months included a disposal gain of RMB 8,674,631.61 and government subsidies of RMB 11,849,646.18 [5].

Product Innovation and Market Expansion - The company launched innovative small appliances under the brands Joyoung, Shark, and Ninja, focusing on the Asia-Pacific market, excluding mainland China, to enhance market share and product offerings[9]. - In the first half of 2024, the Joyoung division maintained its leadership in the Chinese small appliance industry, introducing high-quality products with the latest technology, such as the third-generation non-stick rice cooker and silent blender[10]. - The company is actively expanding its retail channels, leveraging both online and offline platforms, and focusing on content e-commerce opportunities through platforms like Xiaohongshu and Douyin[10]. - The successful spin-off of SharkNinja, Inc. in 2023 has allowed the company to focus on its core business and accelerate its presence in the Asia-Pacific market[8]. - The introduction of the Y8 product, which offers adjustable grinding direction and speed, showcases the company's commitment to meeting diverse consumer needs[10]. - The company continues to adapt to the rapidly changing retail landscape in China, focusing on emerging channels and new retail strategies[10]. - The company aims to enhance user engagement and brand loyalty by building a complete sales ecosystem that includes user research, data analysis, content creation, and live streaming[10]. - The company’s global R&D platform supports product development by utilizing consumer preference data to guide innovation[8]. Financial Performance - Total revenue for the ongoing business reached $743.0 million, a year-on-year increase of 29.5% compared to $573.6 million in 2023[22]. - Gross profit amounted to $245.8 million, reflecting a year-on-year increase of 15.2%, with a gross margin of 33.1%, down 4.1 percentage points from 37.2% in the previous year[19]. - Net profit attributable to the parent company decreased by approximately 37.0% to about $21.8 million, while overall profit dropped by 35.9% to approximately $29.6 million[19]. - EBITDA for the reporting period decreased by 43.0% to approximately $41.7 million, and adjusted EBITDA fell by 64.4% to about $28.1 million[19]. - The group reported a total comprehensive income of $20.15 million for the period, compared to $103.34 million in 2023, reflecting a significant decline[148]. - The net profit attributable to the parent company for the six months was $21.80 million, a decrease of 82.9% from $127.81 million in the prior year[145]. - The adjusted profit before tax for the group was $36.78 million, compared to $53.31 million in the previous year, indicating a decrease of 30.9%[166]. Revenue Breakdown - The Joyoung segment generated $487.2 million in revenue, accounting for 65.6% of total revenue, a slight decrease of 0.8% year-over-year[24]. - The SharkNinja Asia Pacific segment saw a significant revenue increase to $123.1 million, up 153.3% from $48.6 million in 2023, representing 16.6% of total revenue[24]. - Revenue from the Joyoung brand was approximately $478.2 million, down 1.5% from $485.3 million in 2023, primarily due to weak sales in water purifiers and cookware[26]. - The Shark brand recorded revenue of $92.8 million, a 94.5% increase from $47.7 million in 2023, driven by growth in cordless vacuum cleaners and hair care appliances[28]. - The Ninja brand achieved revenue of $39.3 million, a remarkable increase of 504.6% from $6.5 million in 2023, attributed to strong growth in kitchen appliances in the Asia Pacific region[28]. - Revenue from mainland China was approximately $478.4 million, a decrease of 0.8% from $482.3 million in 2023, with improved sales in food preparation and cleaning appliances[29]. - Revenue from Japan increased by 16.8% to $43.7 million, benefiting from a growing market share in cordless vacuum cleaners[30]. - Revenue from Australia and New Zealand surged by 333.0% to $44.6 million, driven by strong marketing efforts[30]. Cost and Expenses - Sales cost for the group's continuing operations increased by approximately 38.0% to $497.1 million, with third-party sales cost rising by about 9.8% to $395.6 million[34]. - Administrative expenses from continuing operations increased by approximately 83.8% from about $63.5 million in the six months ended June 30, 2023, to approximately $116.7 million in the reporting period[48]. - Employee costs accounted for $83.6 million, a significant increase from $35.7 million in the previous year[48]. - Other expenses from continuing operations rose approximately 237.5% from about $0.8 million to approximately $2.7 million, primarily due to foreign exchange losses[50]. - Financing costs decreased by approximately 87.2% from about $14.1 million to approximately $1.8 million, mainly due to the repayment of bank loans in the previous year[52]. Shareholder Information and Corporate Governance - As of June 30, 2024, the company's executive director and chairman, Mr. Wang Xuning, holds approximately 57.36% of the company's issued share capital, equating to 1,992,986,204 shares[94]. - The company has complied with all applicable provisions of the corporate governance code, with the exception of the separation of roles between the chairman and CEO[98]. - The board believes that having the same person serve as both chairman and CEO is beneficial for the group's business development and operational coordination[99]. - The company has a significant concentration of ownership, with JS&W and its affiliates controlling the majority of shares[108]. - The company has adopted the standard code of conduct applicable to all directors and employees who may possess insider information related to the company[100]. Cash Flow and Assets - The company's cash flow from operating activities for the six months ended June 30, 2024, was $83,653,000, a decrease of 78.8% compared to $394,730,000 in the same period of 2023[157]. - The total cash and cash equivalents at the end of June 2024 were $362,308,000, down 30.6% from $521,759,000 at the end of June 2023[159]. - Total non-current assets increased to $423,462,000 in June 2024 from $381,382,000 in December 2023, representing an increase of 11.4%[150]. - Current assets decreased to $976,742,000 in June 2024 from $1,021,909,000 in December 2023, a decline of 4.4%[150]. - Total liabilities decreased to $667,619,000 in June 2024 from $694,758,000 in December 2023, a reduction of 3.9%[150]. - Net assets increased to $717,582,000 in June 2024 from $698,165,000 in December 2023, reflecting a growth of 2.0%[151]. Future Outlook and Strategic Plans - The company aims for sustainable growth through a focus on small household appliances, emphasizing health and innovation[83]. - The company plans to expand its sales network and product categories while enhancing consumer interaction through creative marketing activities[84]. - The SharkNinja Asia-Pacific division targets growth in the top 25 cities, reaching over 75 million households with innovative small appliance products[85]. - The company is actively evaluating untapped markets in the Asia-Pacific region, entering the Philippines and Indonesia through exclusive distribution partnerships[89]. - The global macroeconomic environment in the first half of 2024 showed volatility in energy prices and high raw material costs, impacting consumer purchasing behavior[90]. - The company remains optimistic about long-term economic growth in the Asia-Pacific region, driven by e-commerce and digital payment trends[90].

2024 年 9 月 24 日 耐用消费品及服装: 中性 证券研究报告 / 公司更新报告 JS 环球生活 (1691 HK, 买入, 目标价: HK$1.88) 买入 搏有 盘出 | --- | --- | --- | --- | |--------------------------------------------|-------|----------|-----------| | 目标价 : HK$1.88 | | 当前股价 | : HK$1.50 | | 股价上行/下行空间 | | | +25% | | 52 周最高 /最低价 (HK$) | | | 1.79/1.12 | | 市值 (US$mn) | | | 669 | | 当前发行数量 (百万股) | | | 3,475 | | 三个月平均日交易額 (US$mn) | | | 1 | | 流通盘占比 (%) 主要股东 (%) | | | 100 | | | | | | | JS Holding 按 2024 年 9 月 23 日收市数据 | | | 46 | | 资料来源: FactSet 主要调整 | | | | | | 现值 | 原值 | ...

Financial Performance - Revenue from continuing operations for the six months ended June 30, 2024, was $743.0 million, an increase of 29.5% year-over-year[2]. - Gross profit from continuing operations for the same period was $245.8 million, reflecting a year-over-year increase of 15.2%[2]. - Profit from continuing operations decreased to $29.6 million, a decline of 35.9% compared to the previous year[2]. - EBITDA for the reporting period decreased by 43.0% to approximately $41.7 million[2]. - Adjusted EBITDA fell by 64.4% to approximately $28.1 million[2]. - Basic earnings per share for the period was $0.6 cents, down from $3.7 cents in the previous year[7]. - Total comprehensive income for the period was $29.6 million, compared to $139.5 million in the prior year[9]. - The operating profit before tax for the six months ended June 30, 2024, was $36,784 thousand, compared to $53,306 thousand for the same period in 2023, indicating a decrease of 30.9%[24]. - Total tax expenses for continuing operations amounted to $7,221 thousand, slightly up from $7,149 thousand in the previous year[31]. - Net profit from continuing operations decreased by approximately 35.9% from about $46.2 million in the six months ended June 30, 2023, to approximately $29.6 million in the same period of 2024[90]. - Adjusted net profit for the six months ended June 30, 2024, was $29.6 million, a decrease from $46.2 million in the same period of 2023, representing a decline of 36.5%[92]. Assets and Liabilities - Non-current assets as of June 30, 2024, totaled $423.5 million, an increase from $381.4 million as of December 31, 2023[13]. - Current assets amounted to $976.7 million, a decrease from $1,021.9 million at the end of the previous year[13]. - Current liabilities totalled $667,619, a decrease of 3.1% from $694,758[15]. - Non-current liabilities increased to $15,003, up 44.8% from $10,368[16]. - Total equity reached $717,582, reflecting a growth of 2.0% compared to $698,165[17]. - Net assets amounted to $732,585, an increase of 3.9% from $708,533[15]. - The company reported a decrease in accounts payable and notes payable to $485,029, down from $472,410[15]. - The lease liabilities rose significantly to $9,514, compared to $3,177 previously[16]. - Total accounts receivable and notes receivable as of June 30, 2024, amounted to $353,375,000, down from $395,804,000 as of December 31, 2023[43]. - Total accounts payable and notes payable as of June 30, 2024, increased to $485,029,000 from $472,410,000 as of December 31, 2023[44]. - The company's debt-to-equity ratio as of June 30, 2024, was 2.1%, an increase of 1.3 percentage points from 0.8% as of December 31, 2023, mainly due to an increase in lease liabilities during the reporting period[100]. Market Performance - Revenue from the China market was $478,423 thousand, slightly down from $482,308 thousand, indicating a decrease of 0.2%[27]. - SharkNinja's revenue in the Asia-Pacific region (excluding mainland China) reached $123.1 million in the first half of 2024, a 153.3% increase from $48.6 million in the same period last year, driven by strong sales of Shark vacuum cleaners and Ninja kitchen appliances[51]. - In Japan, Shark's cordless upright vacuum cleaner category saw retail sales points grow by 37.4% year-on-year in the first half of 2024, while the overall category only grew by 8.5%, increasing Shark's value share to 16.9%, up 360 basis points from the previous year[52]. - The Joyoung division maintained its leadership in the Chinese small appliance industry, focusing on health and innovation, with successful products like the third-generation non-stick rice cooker and silent blender gaining traction in more households[48]. - Joyoung's new non-stick rice cooker features dual-core cooling systems and advanced heating technologies, achieving a national II-level non-stick standard and enhancing the cooking experience for various rice types[48]. - The new R5 Pro water purifier incorporates a comprehensive antibacterial system, ensuring safe drinking water and providing hot water in approximately six seconds, with a six-year long-lasting filter[49]. - The business in Australia and New Zealand achieved a net income growth of 333.0% year-on-year in the first half of 2024[54]. - Shark cordless vacuum cleaners experienced a growth rate of 650% in Australia, driven by the successful launch of Detect Pro and accelerated development of Stratos[54]. - The Ninja brand in Australia saw a 400% increase in the blender category and a 350% increase in the heating category[54]. Strategic Initiatives - The company focuses on three core competitive strengths: developing innovative products with design appeal, implementing diverse branding and marketing activities, and establishing a comprehensive sales network[46]. - The company aims to enhance global household quality of life through revolutionary innovation and design-driven smart home products[46]. - The company is accelerating its presence in the Asia-Pacific market while continuing to deepen its core business with trusted leading brands[46]. - Joyoung is actively expanding its retail channels, focusing on e-commerce platforms like Xiaohongshu and Douyin, and enhancing its digital marketing capabilities to improve brand recommendation value and attract new users[50]. - The company is strengthening its direct sales teams and self-operated stores to better connect with consumers and adapt to market trends, aiming for sustainable high-quality development[50]. - The company is committed to enhancing its product offerings and market presence through continuous technological innovation and strategic partnerships[47]. - The company aims to achieve sustainable growth through strategies such as developing innovative small appliance products and expanding sales networks and product categories[106]. - The company is actively seeking potential strategic partnerships and acquisitions to enhance its market presence[106]. - The company plans to evaluate and develop targeted market strategies for untapped regions in the Asia-Pacific, including the Philippines and Indonesia[110]. Operational Efficiency - Capital expenditures for the six months ended June 30, 2024, totaled $22,336 thousand, significantly higher than $2,370 thousand in the same period of 2023[24]. - The company reported a net cash inflow of $16,491,000 from operating activities for the six months ended June 30, 2023[37]. - The company has no significant contingent liabilities as of June 30, 2024, indicating a stable financial position[105]. - The company has no borrowings as of June 30, 2024, reflecting a strong liquidity position[102]. - The company will continue to focus on the small home appliance sector, emphasizing user demand and product innovation[107]. - The company is providing procurement services to SharkNinja's non-Asia Pacific business, generating a revenue of $25.0 million for the six months ended June 30, 2024[93]. - The company is engaged in product development and transitional services, generating a revenue of $2.5 million for the six months ended June 30, 2024[93]. Governance and Compliance - The company has established four board committees, including the Strategy Committee and Audit Committee, in compliance with corporate governance regulations[113]. - Maximilian Walter Conze was appointed as an independent non-executive director on May 22, 2024[119]. - The company has adhered to all applicable corporate governance codes during the reporting period, with a noted exception regarding the roles of the Chairman and CEO[116]. - The company did not conduct any significant investments during the reporting period[120]. - No major acquisitions or sales of subsidiaries, joint ventures, or associates were undertaken during the reporting period[120]. - The board does not recommend any interim dividend for the six months ending June 30, 2024, compared to HKD 0.0392 per share for the same period ending June 30, 2023[121].

Investment Rating - The report maintains a "Recommend" rating for JS Global Lifestyle (01691 HK) with a target price of HKD 1 7 [1] Core Views - JS Global Lifestyle completed the spin-off of SN Group retaining the Joyoung division and SN Asia-Pacific business The retained business achieved revenue of USD 1 43 billion in 2023 a year-on-year decrease of 3 2% on a comparable basis [1] - The Joyoung division saw a significant revenue decline of 20 5% to USD 1 05 billion due to weak demand in the domestic small household appliance market while SN Asia-Pacific business surged 137 4% to USD 150 million driven by strong growth in the Japanese vacuum cleaner market [1] - The company's gross margin for continuing operations in 2023 was 34 1% down 2 3 percentage points year-on-year Joyoung's gross margin fell by 1 percentage point to 31 1% while SN Asia-Pacific's gross margin increased by 2 6 percentage points to 42 2% [1] - The spin-off of SN Group to list on the US stock market is expected to enhance the overall value of SN and allow both JS Global and SN to focus on their respective business areas improving operational efficiency and talent incentives [1] - The report forecasts adjusted net profit attributable to shareholders of USD 70 million for 2024 USD 80 million for 2025 and USD 90 million for 2026 [1] Financial Performance - In 2023 JS Global Lifestyle reported revenue of USD 1 438 billion a year-on-year decrease of 71 7% and net profit attributable to shareholders of USD 132 million a year-on-year decrease of 60 4% [2] - The company's gross margin for 2023 was 34 1% with a net margin of 9 2% [8] - Revenue is expected to grow by 7 8% in 2024 5 8% in 2025 and 5 0% in 2026 reaching USD 1 720 billion by 2026 [2] - Net profit attributable to shareholders is projected to decline by 45 8% in 2024 but recover with growth of 16 0% in 2025 and 9 0% in 2026 [2] Business Segments - The Joyoung division contributed USD 1 05 billion in revenue in 2023 a 20 5% decline year-on-year due to weak domestic demand [1] - SN Asia-Pacific business achieved revenue of USD 150 million in 2023 a 137 4% increase year-on-year driven by strong performance in the Japanese market particularly the Shark brand which saw revenue grow by 62 5% to USD 120 million [1] Future Outlook - The company is expected to benefit from the recovery in domestic small household appliance demand and the growth potential of SN Asia-Pacific's product development and channel expansion [1] - The report anticipates improved profitability and gross margins in the future supported by product iteration and innovation strategies [1]

Financial Performance - Revenue from continuing operations in 2023 was $1,428.7 million, a decrease from $1,475.5 million in 2022[7] - Gross profit for 2023 was $486.6 million, down from $536.4 million in 2022[7] - Net profit attributable to owners of the company in 2023 was $131.7 million, compared to $332.3 million in 2022[7] - Adjusted EBITDA for 2023 was $397.1 million, a significant drop from $673.0 million in 2022[7] - Total revenue from continuing operations in 2023 was approximately $1,429 million, a decrease of 3.2% year-over-year[10] - Gross profit from continuing operations in 2023 was approximately $487 million, a decrease of 9.3% year-over-year, with a gross margin of 34.1%, down 2.3 percentage points[11] - Adjusted profit from continuing operations decreased by 72.2% to approximately $38 million, with net profit per share at 1.5 cents, down 40.0% year-over-year[11] - The company's total revenue from continuing operations decreased by 3.2% YoY to $1,428.7 million in 2023, with gross profit declining 9.3% to $486.6 million and gross margin dropping 2.3 percentage points to 34.1%[25] - The company's net profit attributable to owners of the parent decreased by 39.5% YoY to $51.9 million in 2023, while adjusted net profit dropped 72.2% to $37.7 million[25] - The company's EBITDA for continuing operations declined 31.1% YoY to $116.5 million in 2023, while adjusted EBITDA fell 56.6% to $83.9 million[25] - Pre-tax profit for 2023 was $84.8 million, a decrease from $136.7 million in 2022[57] - EBITDA for 2023 was $116.5 million, down from $169.1 million in 2022[57] - Adjusted EBITDA for 2023 was $83.9 million, compared to $193.3 million in 2022[57] - Net profit for 2023 was $150.0 million, a significant drop from $357.5 million in 2022[60] - Adjusted net profit for 2023 was $229.8 million, down from $425.6 million in 2022[60] - EBITDA for the group's continuing and discontinued operations in 2023 was $328.7 million, compared to $624.5 million in 2022[62] - Adjusted EBITDA for the group's continuing and discontinued operations in 2023 was $397.1 million, down from $673.0 million in 2022[62] Balance Sheet and Assets - Total assets as of 2023 were $1,403.3 million, a decrease from $4,635.8 million in 2022[8] - Total equity attributable to owners of the company in 2023 was $535.5 million, down from $1,899.7 million in 2022[8] - Non-current liabilities decreased to $10.4 million in 2023 from $976.1 million in 2022[8] - Current liabilities in 2023 were $694.8 million, compared to $1,595.0 million in 2022[8] - Inventory decreased by 81.4% from $646.3 million as of December 31, 2022, to $120.1 million as of December 31, 2023, primarily due to the exclusion of inventory from discontinued operations[65] - Accounts receivable decreased by 67.0% from $1,198.0 million as of December 31, 2022, to $395.8 million as of December 31, 2023, mainly due to the exclusion of receivables from discontinued operations[66] - Accounts payable decreased by 31.3% from $687.5 million as of December 31, 2022, to $472.4 million as of December 31, 2023[67] - Cash and cash equivalents stood at $319.8 million as of December 31, 2023, compared to $504.1 million as of December 31, 2022[67] - The company's debt-to-equity ratio decreased significantly from 45.6% as of December 31, 2022, to 0.8% as of December 31, 2023, due to the repayment of all bank borrowings[68] Operational Challenges and Strategic Responses - The company faced challenges in 2023 including the US banking crisis, Russia-Ukraine war, raw material price fluctuations, inflation, and Red Sea shipping disruptions[9] - The company emphasized innovation and adaptability in response to the challenging global environment in 2023[9] - The company's ongoing operations (including Joyoung Division and SharkNinja Asia-Pacific business) experienced a decline compared to 2022 due to increased professional service fees, sales and promotion expenses, and human resource costs[17] - The company's growth strategy includes developing innovative small household appliances, expanding sales networks, and seeking strategic partnerships and acquisitions[74] - The SharkNinja Asia-Pacific division focuses on growth in existing categories, launching new product categories, and expanding into new markets in the Asia-Pacific region[76] - SharkNinja Asia Pacific division focuses on providing innovative products tailored to local consumer needs, such as lightweight cordless vacuum cleaners in Japan, leading in performance, weight, and noise levels[77] - The company expanded into the personal care category by launching hair care products in the Asia Pacific region, demonstrating its commitment to product diversification and leveraging technical expertise[77] - SharkNinja is actively evaluating untapped markets in the Asia Pacific region and developing targeted strategies to successfully launch products in new countries, aiming to enhance brand image and consumer awareness[77] - The company's growth strategy is centered on meeting consumer needs, winning in core product categories, and seeking expansion opportunities in both product categories and geographic markets[77] - SharkNinja plans to continue launching innovative products tailored to local markets through its R&D teams and leveraging the R&D platforms of Joyoung and SharkNinja Group[77] Market and Regional Performance - Joyoung division revenue was approximately $1,190 million, a decrease of 10.2% year-over-year[10] - SharkNinja Asia-Pacific division revenue was approximately $239 million, an increase of 58.9% year-over-year[10] - SharkNinja Asia-Pacific (excluding Mainland China) achieved strong revenue growth of $151.7 million in 2023, a 137.4% YoY increase, driven by market share gains in Japan and expansion into new markets like Australia, New Zealand, Singapore, and Malaysia[22] - Shark's cordless vacuum category in Japan grew retail sales outlets by 56% in 2023, increasing its value share to 16.7%, up 480 basis points from 2022[23] - SharkNinja's business in Australia and New Zealand grew 97% YoY from Q2 to Q4 2023, driven by new product launches like Detect Pro and FlexStyle, which gained an additional 8% market share in hair care appliances[24] - Joyoung division's revenue from third-party customers fell 20.5% YoY to $1,053.1 million in 2023, accounting for 73.7% of total group revenue, due to weak demand in the competitive Mainland China market[28] - SharkNinja Asia-Pacific division's revenue from third-party customers surged 137.4% YoY to $151.7 million in 2023, representing 10.6% of total group revenue[28] - SharkNinja's new markets in Australia, New Zealand, Singapore, and Malaysia contributed $47.9 million in additional revenue in 2023, diversifying the product line with items like air fryers and ice cream makers[22] - SharkNinja's entry into the South Korean market through a distributor generated $12.7 million in revenue in 2023, a new market for the company[22] - Shark brand revenue increased by 62.5% to $117.3 million, driven by innovation in cordless vacuum cleaners and the launch of hair care appliances[31] - Ninja brand revenue reached $44.0 million, entering the kitchen appliance market through strategic acquisitions[31] - Japan region revenue grew by 43.7% to $91.8 million, supported by the success of cordless vacuum cleaners designed specifically for the Japanese market[33] - Australia and New Zealand region revenue was $43.8 million, driven by strategic acquisitions and new product launches[33] - Other markets revenue increased by 74.6% to $31.6 million, due to expansion into new markets such as Singapore, Malaysia, and South Korea[33] - Cooking appliances revenue decreased by 16.7% to $570.2 million, primarily due to weak demand in the Chinese market[35] - Food preparation appliances revenue declined by 16.2% to $354.3 million, mainly due to weak demand for high-performance blenders in China[35] - Cleaning appliances revenue grew by 62.6% to $117.4 million, driven by increased market share in Japan and expansion into other markets[35] - Other product categories revenue decreased by 22.4% to $162.9 million, due to weak demand for water purifiers and cookware in China[35] Costs and Expenses - Total sales cost for continuing operations increased by 0.3% to $942.1 million, with $129.1 million attributed to related party sales[36] - Joyoung division's total sales cost to third-party customers decreased by 19.5% to $725.3 million in 2023 compared to $900.5 million in 2022[37] - SharkNinja Asia-Pacific division's total sales cost to third-party customers increased by 127.2% to $87.7 million in 2023 compared to $38.6 million in 2022[38] - The company's gross profit from continuing operations decreased by 9.3% to $486.6 million in 2023 compared to $536.4 million in 2022, with a gross margin drop of 2.3 percentage points to 34.1%[39] - Joyoung division's gross margin from third-party customer sales decreased to 31.1% in 2023 from 32.1% in 2022, primarily due to increased product promotions and unfavorable product mix[40] - SharkNinja Asia-Pacific division's gross margin from third-party customer sales increased to 42.2% in 2023 from 39.6% in 2022, benefiting from premium product mix and strategic acquisitions[41] - The company's other income and gains from continuing operations increased by 343.7% to $94.5 million in 2023 compared to $21.3 million in 2022, driven by gains from financial assets measured at fair value[44] - Sales and distribution expenses decreased by 2.7% to $256.3 million in 2023 compared to $263.5 million in 2022, mainly due to reduced channel marketing expenses in mainland China[46] - Administrative expenses increased by 52.8% to $216.0 million in 2023 compared to $141.4 million in 2022, primarily due to increased equity compensation and special professional fees related to the spin-off project[48] - Other expenses from continuing operations increased by 47.4% YoY to $2.8 million in 2023, primarily due to the absence of a one-time income adjustment from intercompany fees between continuing and discontinued operations[49] - Financing costs from continuing operations rose by 5.9% YoY to $19.9 million in 2023, driven by accelerated amortization of deferred financing costs, partially offset by reduced bank loan interest[50] - Income tax expenses from continuing operations decreased by 42.1% YoY to $14.6 million in 2023, mainly due to lower pre-tax profits from continuing operations[51] - Net profit from continuing operations declined by 37.0% YoY to $70.3 million in 2023, while combined net profit from continuing and discontinued operations dropped by 58.1% YoY to $150.0 million[53] - Adjusted net profit from continuing operations stood at $37.7 million in 2023, compared to $135.7 million in 2022, reflecting significant adjustments for non-recurring items and equity compensation[55] - The company's Chinese subsidiaries are subject to a 25% corporate income tax rate, with three entities benefiting from preferential tax rates or exemptions in 2023[51] - Bank loan interest expenses decreased to $13.4 million in 2023 from $15.1 million in 2022, while deferred financing cost amortization increased to $6.1 million from $2.8 million[52] - The company reported a negative $32.6 million in non-recurring and non-operational items for 2023, compared to a positive $24.2 million in 2022[55] - Equity compensation expenses surged to $55.1 million in 2023 from $6.7 million in 2022, significantly impacting adjusted profitability[55] - The company recognized $12.8 million in special professional fees and bonuses related to the spin-off project in 2023[55] - The company incurred $85.8 million in special professional service fees and bonuses related to the spin-off project in 2023[60][62] - The company recognized $40.3 million in procurement service income during the transition period post-spin-off[57][60][62] - The company received $1.7 million in product development and transition service fees from SharkNinja's non-Asia Pacific business[57][60][62] Corporate Governance and Leadership - Stassi Anastas ANASTASSOV has been a non-executive director since June 25, 2019, and a member of the company's strategic committee since the listing date[82] - Yuan DING has been an independent non-executive director since August 29, 2022, and serves as the chairman of the audit committee and a member of the nomination and strategic committees[83] - Yang Xianxiang has been an independent non-executive director since October 11, 2019, and was appointed as the chairman of the remuneration committee on July 30, 2023[84] - Sun Zhe was appointed as an independent non-executive director and a member of the audit and remuneration committees on July 30, 2023[85] - Wang Xuning, aged 55, is the chairman, CEO, and executive director of the company[86] - Han Run, aged 44, is the executive director, CFO, and vice chairman of Joyoung[86] - Yang Ningning, aged 45, has been the chairman of Joyoung since December 2022 and the chairman of Suncoo (China) Technology Co., Ltd. since August 2018[86] - Guo Lang has been the general manager of Joyoung since December 2022, with extensive experience in consumer goods operations[86] - Kan Jiangang has been the CFO of Joyoung since March 2022, with previous experience as the financial director of Tianqi Lithium Corporation and various financial roles at Robert Bosch Group[86] - The company's largest customer accounted for 12% of total revenue, while the top five customers accounted for 22% of total revenue in 2023[94] - The largest supplier accounted for 5% of total procurement, while the top five suppliers accounted for 22% of total procurement in 2023[94] - The company's distributable reserves amounted to approximately $76.352 million as of December 31, 2023[92] - The company completed the spin-off and distribution of SharkNinja, Inc., which began trading on July 31, 2023, and is no longer consolidated in the company's financial statements[95] - The company secured a $100 million loan facility on January 31, 2024, with a maturity date extendable to 36 months under certain conditions[96] - Charitable donations for the year ended December 31, 2023, were approximately $590,000, compared to $1.125 million in 2022[93] - The company did not recommend a final dividend for the year ended December 31, 2023, due to strategic restructuring and plans to invest in the Asia-Pacific market[89] - The company's annual general meeting is scheduled for May 22, 2024, with a notice to be published on the Hong Kong Stock Exchange website and the company's website[88] - The audit committee reviewed the company's consolidated financial information for 2023, including accounting principles and practices, with external auditor EY[91] - The company's share transfer registration will be suspended from May 17 to May 22, 2024, for the annual general meeting[90] - Wang Xuning holds a 55.69% stake in the company through direct and indirect interests, including 1,934,882,576 shares[104] - Han Run holds a 46.15% stake in the company through direct and indirect interests, including 1,603,578,331 shares[104] - Huang Shuling holds a 46.15% stake in the company through direct and indirect interests, including 1,603,578,331 shares[104] - Wang Xuning indirectly owns 61.85% of Shanghai Hezhou Investment, which holds 83.75% of Lihao Investment, a major shareholder of Jiuyang Soybean[102] - Jiuyang Soybean is owned by Lihao Investment (42.5%), Solar Blue (25.5%), Jiuyangyuan Partnership (15%), and an independent third party (17%)[102] - Hangzhou Yibei, which was deregistered in August 2023, was 54.08% owned by Wang Xuning and his close associates[102] - The company's products target home and individual consumers, while Jiuyang Soybean focuses on supplying factories, schools, and restaurants[102] - The company's home appliances, such as soy milk machines and blenders, differ in usage scenarios from Hangzhou Yibei's capsule beverage machines[102] - Han Run holds a 0.27% stake in a related entity, Jiuyang, with 2,040,000 shares[108] - JS&W holds a beneficial interest of 1,603,578,331 shares, representing 46.15% of the company's equity[111] - Hezhou and Tong Zhou hold controlled corporate interests of 1,603,578,331 shares each, both representing 46.15% of the company's equity[111] - HONGTAO Holding Company Limited holds a joint interest of 1,603,578,331 shares, representing 46.15% of the

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 1.54, based on an 11x PE multiple for 2024 [2][6] Core Views - The company reported revenue of USD 1.429 billion in 2023, a year-on-year decline of 3.17% on a comparable basis, with net profit from continuing operations at USD 70 million, down 36.96% year-on-year [1] - Joyoung division revenue declined by 21% year-on-year to USD 1.053 billion due to weak demand in the domestic small household appliance market and intensified competition, while SharkNinja (SN) Asia-Pacific division revenue surged 137% year-on-year to USD 152 million, driven by strong sales of wireless vacuum cleaners in Japan and market expansion in Australia and New Zealand [1] - The company's gross margin for continuing operations in 2023 was 34.1%, down 2.3 percentage points year-on-year, with the Joyoung division's gross margin declining by 1.0 percentage point due to increased promotional activities and a higher proportion of low-margin products, while the SN Asia-Pacific division's gross margin improved by 2.6 percentage points due to a higher proportion of high-margin products and channels [1] - The company's net profit margin for continuing operations in 2023 was 4.9%, down 2.6 percentage points year-on-year, primarily due to increased marketing and human resource investments for expanding the Asia-Pacific market and one-time professional service fees related to business restructuring [1] Financial Forecasts - The report forecasts the company's net profit attributable to shareholders for 2023-2025 to be USD 132 million, USD 64 million, and USD 74 million, respectively, with EPS of USD 0.04, USD 0.02, and USD 0.02 [2][6] - Revenue is expected to grow by 7.1% in 2024 and 14.2% in 2025, reaching USD 1.530 billion and USD 1.747 billion, respectively [3] - The company's gross margin is projected to remain stable at around 34.1%-34.6% from 2023 to 2025, while the net profit margin is expected to decline to 4.2% in 2024 and 2025 [3] Business Performance by Region - Revenue from China declined by 20.6% year-on-year to USD 1.038 billion in 2023, while revenue from Japan increased by 43.7% year-on-year to USD 92 million [1] - The company entered new markets in Oceania, Singapore, and Malaysia, generating revenue of USD 44 million from Australia and New Zealand and USD 32 million from other markets in 2023 [1] Valuation and Peer Comparison - The company's 2024 PE multiple of 11x is based on a peer group average, with comparable companies including Supor, VESYNC, SEB SA, and Whirlpool Corporation, which have adjusted average PE multiples of 11.25x for 2024 [6][7]

Financial Performance - For the first quarter ending March 31, 2024, the operating revenue was RMB 2,065,327,130.90, representing a year-on-year increase of 9.15% compared to RMB 1,892,190,788.93 in the same period last year[4] - Net profit attributable to shareholders was RMB 129,962,893.25, reflecting a growth of 7.06% from RMB 121,389,403.14 in the previous year[4] - The net profit attributable to shareholders after deducting non-recurring gains and losses was RMB 125,416,859.18, which is an increase of 7.23% from RMB 116,958,852.23 year-on-year[4] - Basic and diluted earnings per share were both RMB 0.17, up 6.25% from RMB 0.16 in the previous year[4] Cash Flow and Assets - The net cash flow from operating activities was RMB 313,309,588.31, showing a slight increase of 2.09% compared to RMB 306,900,520.10 in the same quarter last year[4] - The total assets as of March 31, 2024, were RMB 7,617,060,903.71, a marginal increase of 0.07% from RMB 7,612,080,030.42 at the end of 2023[4] - Net assets attributable to shareholders increased to RMB 3,603,566,285.42, representing a growth of 3.81% from RMB 3,471,347,161.90 at the end of 2023[4] Non-Recurring Items and Subsidies - Non-recurring gains and losses totaled RMB 4,546,034.07 for the quarter, with various components contributing to this figure[5] - The company continues to focus on government subsidies related to normal business operations, which amounted to RMB 7,350,572.56 during the quarter[5] Return on Equity - The weighted average return on equity was 3.67%, an increase of 0.03 percentage points from 3.64% in the previous year[4]